This study investigates the adoption of technological innovation in a least-developed economy: Lao People’s Democratic Republic. World Bank Survey data encompassing nearly 380 enterprises from 2009 and 2012 were used to analyze the effects of collaboration between smaller domestic firms and larger firms, both foreign and domestic. Collaboration with larger firms is statistically significant for adopting new technologies and for adopting new processes, with the former significant for sales. In addition, foreign ownership is statistically significant for sales in one of the OLS estimates. This suggests small and medium enterprises (SMEs), particularly the latter at this point in Lao PDR, would benefit from membership in global value/supply chains.